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Real estate prices may go up in Mumbai

Staff Correspondent

MUMBAI: The Bombay High Court ruling, setting aside the sale of mill lands here by the National Textile Corporation (NTC), is likely to have a far-reaching effect on the real estate development industry in the city.

Mofatraj Munoth, president, Maharashtra Chamber of Housing Industry and chairman and managing director, Kalpataru Group, felt there could be a resultant shooting up of real estate prices. "The market is governed by demand and supply and suddenly if such a large supply of real estate is strangled, the consequence could be a flare-up of real estate prices.''

Sanjay Dutt, Director, Transaction Services, Cushman & Wakefield - India, said: "the development will definitely be a setback to the industry. In a market with limited supply and increasing demand, the unlocking of this asset would have certainly helped increase available space. Many corporates have already planned office buildings on the land and developer's plans would now have to be altered."

The consequence could be a resultant firming up of rent and leasing activity and "they could move up by 10-15 per cent which is quite significant," said Mr. Dutt. "While on the one hand the Government has taken steps to allow foreign direct investment in the real estate sector, this step will certainly make many overseas participants and buyers cautious as their first stop would be Mumbai."

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Real estate prices may go up in Mumbai

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